We are committed to upholding good environmental, social and governance (ESG) practices, which include the promotion of sustainable finance. As part of our mission to humanise financial services, we aim to create a sustainable future for all, through striking a strategic balance between remaining attentive to the implications of our actions on the communities we serve and to the needs of our different stakeholders. Our ultimate ambition is to embed sustainability across all our operations to drive change for a better world for the good of humanity.
Our purpose and value-driven commitment towards responsible banking is underpinned by our key sustainability pillars:
We aim to transition to a low carbon economy, balancing environmental and social imperatives with our stakeholders’ expectations.
We strive to build community resilience across ASEAN and undertake responsive actions to promote economic development and social wellbeing.
Our House is in Order & We Walk the Talk
We lead by example with good management practices and ensuring that Maybank’s ESG strategy is based upon a strong foundation.
As one of the leading financial institutions in ASEAN, we believe that we have a crucial role in driving and influencing business practices for a better future. Our core ambitions towards a more sustainable group industry include:
Ensure a just transition to a low carbon economy
We will achieve this for ourselves and our clients through business and operational practices and policies, providing offerings and solutions that deliver impact to our stakeholders.
Promote development and growth
We will support the communities we operate in through impactful social finance solutions while enabling a balanced and inclusive society by providing opportunities and access to resources.
Commit to a carbon neutral position
We pledge to manage our own emissions and achieve this by 2030 through the adoption of leading sustainable practices and supporting our suppliers’ transition towards high ESG standards, while enabling greater inclusion.
Build a strong sustainability culture
We want to further strengthen our foundation in governance, ethics, trust and transparency to reflect the highest commitment to diversity, inclusion, equity, and privacy.
To mobilise RM50 billion in Sustainable Finance by 2025
This includes direct lending and investments, services related to arranging, syndicating, fundraising or underwriting as well as advisory, all of which will integrate ESG criteria.
To improve the lives of One Million Households across ASEAN by 2025
Anchored on our mission of Humanising Financial Services, this involves empowering our communities through initiatives that contribute towards the betterment of lives, upward social mobility and reduced inequalities, and providing greater financial inclusion for the vulnerable communities in alignment with our overall mission and the UN Sustainable Development Goals (SDGs).
To achieve a Carbon Neutral Position of our own emissions by 2030 and Net Zero Carbon Equivalent position by 2050
This goal is necessary to halt the negative impact of climate change, which is critical in meeting the 1.5°C global warming target under the Paris Agreement. This involves ensuring an overall balance between all direct and indirect CO2e emissions, across our operations and the business activities we finance.
To achieve 1 Million hours per annum on sustainability and delivering 1,000 significant SDG-related outcomes by 2025.
This entails embedding sustainability actions and thinking across our business and operations, within community-based programmes and shaping a sustainability culture among Maybankers.
The Maybank Group Sustainability Framework serves as the overarching document that guides our overall approach towards sustainability and further supported by other core frameworks & policies.
Our position on NDPE
We have a No Deforestation, No New Peat, No Exploitation (NDPE) stance for the Group which applies to all relevant sectors, including but not limited to palm oil, forestry and logging industries. On deforestation, this includes forest reserves, primary forests and environmentally sensitive areas, whilst for exploitation, this covers forced labour, child labour as well as minimal wage requirements. NDPE is viewed as a fundamental component for sustainable practices, given the adverse impact such activities have on our customers, the community and the environment. As such, the Group will not extend new financing facilities to customers that are not aligned to this stance.
Our position on palm oil
We recognise that food security and safety are crucial elements in addressing our sustainability agenda. An important contributor to this is the palm oil industry which is widely used throughout the global food supply chain. In view of this we need to ensure that the industry is managed responsibly and this is reflected as part of our NDPE stance of which we will not finance activities where we believe are or could lead to a significantly adverse impact on the environment, surrounding communities and labour. This applies to all business segments within the Group that extend any form of financing to the palm oil supply chain. Over and above this, clients are subject to or at minimum required to have a time-bound commitment to meet requirements such as local or international sustainable palm oil certification, zero burning practices, best practices on existing peat, climate change, biodiversity and Free, Prior and Informed Consent (FPIC), amongst others.
Our position on forestry & logging
We believe the forestry industry is a necessity for sustainable development - both locally and globally. Besides the provision of livelihoods, well managed forests contribute to the stabilisation of the global climate system, regulate water cycles, provide a natural habitat and supports rural community development. Therefore, we will not finance activities where we believe are or could lead to a significantly adverse impact on the environment, surrounding communities and labour. This applies to all business segments within the Group that extend any form of financing to the forestry and logging value chain. The Group has zero tolerance towards illegal logging and trading of illegal timber and we are guided by a number of national and regional principles through certification and licensing requirements. Furthermore, clients are subject to or at minimum required to have a time-bound commitment to meet requirements such as biodiversity protection as well as FPIC of indigenous people and local communities.
Our position on coal
Coal has been the primary source of energy for many developing nations, allowing affordable and reliable access to electricity to even the most remote of regions. It has also enabled economic development by serving as a raw material to many other industries, such as cement and steel. However, we too are cognisant of the significant ecological impacts associated with coal. In view of this, we are taking a balanced approach in our transition to support the adoption of alternative fuel sources. We are committed to not financing any new greenfield coal activity and this currently includes corporate lending, project financing as well as advisory services such as arranging, syndicating, fundraising and underwriting. We are working with our clients, relevant organisations, and countries within the regions to explore the use of cleaner, more efficient and environmentally friendly energy sources. In this regard, we are committed to supporting our clients transition to a sustainable fuel mix. Over and above this, transactions and projects within this sector are subject to enhanced due diligence of which the nature of transaction and ESG impacts are assessed. This includes the client’s ability to manage associated risks and their current state of performance, capacity and commitment towards sustainability targets. In addition, we will support clients who demonstrate their commitment to reduce reliance on coal power and stop the building of new coal fired power plants where more sustainable alternatives are available.
Green Project Financing
As part of our sustainable financing drive, we are involved in four large-scale solar photovoltaic power plant projects from 2020, with a total financing of approximately RM1.3 billion. These projects provide an opportunity to replace conventional coal or gas-powered plants in the local energy grid and lower carbon emissions.
We also support the SunLease programme through a RM70 million loan to construct a 30MW rooftop photovoltaic system to generate cheaper electricity.
Maybank IB's Cypark Ref's 550 Million Sri Susuk Muhabarah Programme
Cypark Ref’s RM550 million SRI sukuk was an award-winning, landmark green financing deal in Malaysia. We led the deal and brought in an unprecedented Solar Turnkey Financing Structure that enabled Cypark to tap into the debt capital market for the funding of three separate large-scale solar projects. The three solar projects, 90MW in total, are projected to reduce greenhouse gas emissions by approximately 2.4 million tonnes over 21 years.
Supporting Innovation Through Financing Waste-to-Energy Projects
In 2020, we channelled RM374 million into refinancing waste-to-energy projects as an opportunity to advance renewable energy generation in Malaysia. These projects also support waste management efforts by incinerating municipal solid waste to produce steam for electricity generation. They are slated to convert 600 tonnes of waste per day, generating up to 25MW of power, with the potential to expand further in the future.